Danvers access TV warns cable subscriber decline is shrinking franchise-fee funding, urges diversification

Danvers Community Access Television (DCAT) reported at its annual meeting on Sept. 25, 2025, that long-term declines in cable subscriptions have reduced franchise-fee revenue and will require the nonprofit to rely more on reserves, underwriting and fundraising while pressing state legislators to modernize fee rules.

The issue is central because DCAT uses franchise fees from Comcast and Verizon to fund staff, equipment and the town’s government, education and public programming. "I don't think that you should be locked out of watching a select board meeting because you don't subscribe to Comcast," the executive director said, arguing the current funding model relies on a shrinking pool of cable payers.

DCAT reported that its audited or review-level financial filings (Form 990) show a total organization value of about $1,200,000 as of the end of 2023; that figure includes cash, investments and the book value (less depreciation) of equipment and leasehold improvements at town locations. The fiscal year runs July 1 to June 30; DCAT said it is undergoing a financial review by an independent CPA for FY25 and that the Form 990 is publicly available.

Staff and revenue context: the station operates with four full-time staff and several part-time videographers. DCAT said franchise fees from Comcast and Verizon comprise the bulk of its funding; the executive director explained that statewide cable subscribership fell about 45% from its peak and that Danvers has seen roughly a 36% decline in cable subscribers as of 2024, with an expectation that the 2025 number will be at least 40% below peak. In 2021, Verizon renegotiated its franchise agreement that temporarily raised its fee share from 3% to 4%, producing a short-term revenue increase, the director said.

Legal and business limits: DCAT emphasized it cannot sell traditional commercial advertising under its Comcast and Verizon license agreements and operates as a noncommercial entity; underwriting (similar to PBS-style acknowledgments) is allowed. The director said that underwriting and other local sponsorship deals have improved recently but will not fully offset the long-term decline in cable-based revenue.

Programming, services and operations: DCAT reported producing roughly 15,600 hours of new original programming in the fiscal year, televising 146 meetings (mostly live) and broadcasting 78 games. The station assisted 67 different community groups, ran three internships, held video-production camps for 57 students, and had about 24 public members actively producing content. Video-on-demand views were reported at 398,000. DCAT also calculated an "equivalent value of services" of about $433,000 for the equipment and facilities it provides the town.

Capital and technology plans: DCAT said it maintains capital reserves for equipment replacement and has planned upgrades including four new remote-controlled studio cameras expected in mid-October, audio mirroring upgrades and a new switcher for the senior center. The director described continuing efforts to build redundancy and reliability in broadcast checklists and technical systems.

Advocacy and next steps: recognizing the structural funding challenge, DCAT urged board members and supporters to raise the issue with state legislators. The director described pending legislation in the Massachusetts legislature to modernize fees so internet-based video providers that use the public rights-of-way would contribute similarly to incumbent cable operators; DCAT encouraged local advocacy while noting the legislative process is typically slow.

Community training and innovation: DCAT said it will host an AI video workshop on Oct. 23, demonstrating both opportunities and concerns around emerging tools; the station provided a short AI-produced clip during the meeting to illustrate the technology.

The director closed by stressing the organization's goal to stretch reserves while preserving service levels and by praising staff for improved reliability over the year.